Social Security benefits are pegged to inflation. When the government announces inflation figures tomorrow, it’s likely that a retiree’s monthly social security benefits could increase by 5% or more. Social Security calculates the Cost of Living Adjustment (COLA) using inflation over the 12 months preceding September. It’s estimated that the CPI-W, the figure used, will be above 5% since, for the 12 months trailing August, the figure was 5.9%.
Of course this is a double edged sword. On one hand, Social security retirees will get more money. On the other, things are more expensive.